SETT - F&O Settlements
What is
There are many ITAS modes for settling futures/options trades. SETT is a very explicit method where filter selections of instrument, prompt month, account, trade dates, assignment broker etc allow the user to restrict the trades to be processed. There are 6 styles of closure , FIFO, LIFO, pick the trades, mark-to-market etc with the resulting settlement accounting documents reflecting any settlement commissions and the grossed up buy and sell values. SETT operates only for client/house trades with BSETT handling the broker settlement (when Dual F&O sub-system in operation)
Because there can be timing differences or different settlement methods between client and broker handling, the accounting documents handle the differences in value by using a series of nominal/general accounts named as TIME SUSPENSE. When the prompt month is full liquidated, these accounts will be net zero as will the open positions. Prior to off-the-board the differences in open position values will be reflected in the timing suspense accounts and are therefore reconcilable using BRKIMPORT.
If any settlement needs to be busted, use SBUST. The results of using SBUST is that the accounting is reversed and the settled trades returned to the open position. If there is only a need to adjust an accounting item e.g. commission paid, that can be achieved without a full settlement bust by using SAMEND.